Sunday, November 11, 2012

Some Nexen and Dollar Thrifty Update

It hasn’t been all that quiet on my end… During the past week, I’ve started to rebuild my position in Nexen, Inc. (Ticker: NXY) with purchase prices ranging from $23.62 to $23.78. We should finally receive a decision by the Canadian Government in early December.

My Dollar Thrifty Automotive Group, Inc. (Ticker: DTG) position has been through a wild ride recently. It finally looks like this deal is heading towards the finish line. The Wall Street Journal is reporting that Hertz Global Holdings, Inc. (Ticker: HTZ) has tentatively agreed to divest some airport locations as requested by the FTC. This will allow the FTC to give the green light on this deal.

In terms of other arb positions, I have a small position in Fushi Copperweld, Inc. (Ticker: FSIN). I was in this position early on and sold. I’m back in now as the definitive proxy has been filed and the shareholder vote is scheduled for early December. I expect this deal to close shortly after the shareholder vote. I’m looking at a total return of ~ 2.37% (annualized return of ~ 15%) assuming a closing by December 31st. It’s not great, but still a decent return with relatively low risk.


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